The following Friday.
Fang Hong woke up early in the morning and paid special attention to the news. As expected, in today's morning news, the "flash crash" incident of the US stock market made the headlines of major domestic media.
Everyone is enjoying eating this melon.
[The depressing "Black Thursday" is here, U.S. stocks plummeted by thousands of points, and the world once again cast a surprised look at the United States] - "Daily Economic News"
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[On Thursday night, the U.S. stock market experienced a storm. The global stock market beacon "Dow Jones Industrial Index" plunged nearly a thousand points wildly during the session. The magnitude was unprecedented and the destructive power was comparable to a nine-magnitude earthquake] - "Global Network"
[Analysis of the Dow Jones Index's thousand-point plunge on Thursday, what happened to the US stock market? Even the Chinese people themselves can’t answer this question] - "Xinlang Finance"
[The U.S. stock market plummeted by thousands of points and the source of the earthquake is urgently investigated. The Securities and Exchange Commission and the Commodity Futures Trading Commission have begun investigations into the "abnormal trading" that caused the stock market to plummet on Thursday] - "New Economic Weekly"
Early in the morning, domestic media from all walks of life gathered to watch and discuss eating melon, and various analyzes and speculations emerged one after another.
According to foreign media reports, traders were actually watching the riots in Athens on TV at the time, but they never expected that the next even more incredible thing would happen to them.
At around 2:30 a.m. in the East Eighth District, the Dow Jones Industrial Average began a once-in-a-century dive, plunging 998.50 points to 9869.62 points, setting a record for intraday points decline. Then it began to rebound again, closing down 347.8 points to 10520.32 points, a drop of -3.2%, the largest drop in more than a year.
The other two major stock indexes were also affected, with the S&P 500 Index plunging -3.24% and the Nasdaq Composite Index falling -3.44%.
At this moment, Fang Hong was eating breakfast and reading an article quoting New York Times columnist Floyd Norris. He gave the reason for the plunge in US stocks last night:
[Partly due to investor anxiety, partly due to the crisis, and partly due to traders' mistakes, coupled with an indifferent Zhongyang Bank, caused yesterday's panic.
These factors brought about the craziest day in the history of financial markets, with the Dow Jones Industrial Average plunging nearly a thousand points at one point and the euro plummeting to its lowest level in more than a year. Emerging market stocks showed signs of overheating and their economies fell sharply (big a: don’t cue), while developed markets fell sharply for fear of a recurrence of recession.
Although a large part of yesterday's intraday plunge in the stock market was due to a trader's mistake, which caused a $40 stock to drop to 1 cent in an instant, global stock markets were already falling before such a mistake occurred.
It appears investors are becoming less willing to hold assets such as stocks and bonds, especially since many assets are already much more expensive than they were just a few months ago. If investors, consumers and businesses retreat on a large scale again, the current global economic recovery may lose a lot of financing, and businesses will lose a lot of new orders...]
Fang Hong laughed when he read this article. Apparently, Freund attributed this plunge to investors' anxiety, the debt crisis, traders' mistakes, and the indifference of the European Harvest Bank, which led to yesterday's panic. Sell.
It cannot be said that it is unreasonable, but it is certainly more than that.
Anyway, some people made a lot of money in this "Flash Crash" incident. They reaped more than a lot of wealth. Star Capital was one of them. Although they made a lot of money, they definitely didn't make the most money. The one where the real big short sellers are hiding deeper.
But then again, worries about the next crisis in Europe have waxed and waned over the past few months.
Europe and the International Monetary Fund announced plans to rescue Xila, but there were also riots in Xila to protest against the government's massive deficit reduction. And yesterday, European Bank Chairman Jean-Claude Trichet said at a press conference that the bank's governance committee had not even discussed the possibility of buying government bonds.
This disappointed some traders, who had hoped that the European Bank of Europe would, like the Federal Reserve, inject liquidity when the situation worsened.
On the contrary, with both Grape and Spain likely to follow the same fate, everyone is increasingly worried that Europe will repeat the mistakes of North America in 2007.
…
Affected by the external market, today's A-share market fell sharply again. It opened at 2685.99 points and opened lower by -1.96%. The 2700 point mark was penetrated in one fell swoop. After the opening, it further fell to 2665 points, and the decline expanded to -2.70%. .
However, it quickly rebounded upward, but unfortunately the good times did not last long. When it was about to completely repair the gap, it was just a little bit short. The rebound ended and fell again in the afternoon.
In the end, the market closed down -1.87% to 2688.38 points, further hitting a new low for the year.
…
In the afternoon, Tian Jiayi came back from the company and found Fang Hong at home. He looked at him with undisguised surprise and said, "How did you predict it so accurately? Do you have a hidden line on Wall Street?"
Fang Hong smiled and asked, "How do you say that?"
Upon hearing this, Tian Jiayi immediately explained: "According to the latest foreign reports, major stock exchanges in North America stated that they are investigating whether there are trading errors. On Thursday night, a group of North American financial circles held an emergency conference call to investigate many Possible trading errors in stocks."
Tian Jiayi added: "Nasdaq omx Group said about two hours after the stock market closed that it would cancel all erroneous trades between 2:40 and 3 p.m. The trading instructions were executed between this time period, and the stock price went up and down. For stocks whose volatility exceeds 60% of the last traded price before 2:40, all such transactions will be cancelled."
After a pause, Tian Jiayi continued: "It is reported that Nasdaq has canceled 10,468 transactions, totaling 1.4 million shares, involving 236 different securities, but the amount of funds for the canceled transactions was not given. In addition, the New York Stock Exchange The exchange also stated that its electronic trading platform will also cancel transactions with a volatility of more than 60% between the same time periods in the United States Eastern Time."
In short, if you can’t afford to lose and don’t admit your losses, Thursday’s transactions will not count!
When Tian Jiayi learned the news, he was surprised again, because Fang Hong had predicted all this.
His strategy perfectly avoided fluctuations. To put it bluntly, he didn't want to be greedy for too much, otherwise the transaction would be cancelled. The tricks he opened didn't count because he was the world's hegemon, and there was nothing a scoundrel could do against him.
The stars were just there to take advantage of it, so it was not appropriate to make it public.
Avoiding cancellation of volatility means that the money earned by Qunxing Capital is not among them. Those investors who copied the floor price are the ones who are extremely happy and sad. For example, those who copied the bottom price from 40 US dollars to 1 cent, how many times did they rise in a day? Thousands of times, people have started to look for luxury cars and mansions, but if one of them turns out to be uncountable, who wouldn’t be dumbfounded?
As for Tian Jiayi's suspicion that he had a secret conspiracy on Wall Street, Fang Hong didn't explain it, and immediately said with a smile: "How much did you make from this one?"
Speaking of this beautiful assistant, a little excitement appeared on her face, "We have made a lot of money. We have completed the fast in and fast out of each product and calculated the total profit. This time, we made a total net profit of 32.7 billion US dollars. If we follow With the maximum volatility of the products we are involved in, we may earn more than 80 billion U.S. dollars. Of course, if we do that, we will lose a penny."
Fang Hong still smiled and said: "Not bad, there are not many opportunities to pick up money like this."
Tian Jiayi couldn't help but said: "With such an accurate prediction, I really doubt whether you have insiders on Wall Street..."
In this situation, this kind of money really cannot be earned by luck.
It is impossible to make money by relying on judgment. It is most reasonable to know the inside information in advance.
Fang Hong smiled and was noncommittal.
To maintain the sense of mystery as the big boss, he knew that the beautiful assistant had this idea, which also meant that core executives such as Hua Yu of Star Capital would also have similar inferences. This was good, let them make their own guesses. , even this kind of inside information often represents terrifying energy, and this indescribable sense of mystery can better establish authority among the people below.
Finally, Tian Jiayi said: "This big profit has also caused the company's net worth of overseas assets to soar to US$77.5 billion, which is about 528.5 billion yuan. Now it is all liquidity. How do you plan to deal with this liquidity? assets?"
Such a huge amount of liquidity has now been withdrawn with interest, but it needs to find a place to live, and cannot let such funds lie there and depreciate.
…
